Zacks Research Weighs in on American Water Works Company, Inc.'s Q1 2025 Earnings (NYSE:AWK)

American Water Works Company, Inc. (NYSE:AWK - Free Report) - Investment analysts at Zacks Research lowered their Q1 2025 earnings estimates for American Water Works in a research note issued on Wednesday, August 21st. Zacks Research analyst J. Saha now anticipates that the utilities provider will post earnings of $1.04 per share for the quarter, down from their previous estimate of $1.08. The consensus estimate for American Water Works' current full-year earnings is $5.25 per share. Zacks Research also issued estimates for American Water Works' Q3 2025 earnings at $1.93 EPS, Q4 2025 earnings at $1.19 EPS, Q1 2026 earnings at $1.24 EPS and Q2 2026 earnings at $1.58 EPS.

American Water Works (NYSE:AWK - Get Free Report) last announced its earnings results on Wednesday, July 31st. The utilities provider reported $1.42 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.47 by ($0.05). American Water Works had a net margin of 21.93% and a return on equity of 9.60%. The company had revenue of $1.15 billion for the quarter, compared to the consensus estimate of $1.10 billion. During the same quarter in the previous year, the firm earned $1.44 earnings per share. The company's revenue for the quarter was up 4.7% compared to the same quarter last year.

A number of other equities research analysts have also recently issued reports on AWK. UBS Group upped their price objective on shares of American Water Works from $124.00 to $139.00 and gave the company a "neutral" rating in a research note on Monday, May 13th. Wells Fargo & Company lowered shares of American Water Works from an "equal weight" rating to an "underweight" rating and upped their price target for the company from $127.00 to $138.00 in a research report on Wednesday, July 31st. Two analysts have rated the stock with a sell rating, two have issued a hold rating and two have given a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $141.17.

American Water Works Price Performance

AWK traded up $0.40 during midday trading on Friday, hitting $140.42. The stock had a trading volume of 521,408 shares, compared to its average volume of 1,252,906. American Water Works has a 1 year low of $113.34 and a 1 year high of $149.00. The company has a debt-to-equity ratio of 1.24, a quick ratio of 0.79 and a current ratio of 0.64. The business has a fifty day moving average of $137.33 and a 200 day moving average of $128.28. The company has a market cap of $27.36 billion, a P/E ratio of 28.48, a price-to-earnings-growth ratio of 3.44 and a beta of 0.67.

American Water Works Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 4th. Investors of record on Tuesday, August 13th will be issued a dividend of $0.765 per share. The ex-dividend date of this dividend is Tuesday, August 13th. This represents a $3.06 dividend on an annualized basis and a yield of 2.18%. American Water Works's dividend payout ratio is currently 62.07%.

Institutional Investors Weigh In On American Water Works

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Norges Bank purchased a new position in American Water Works during the 4th quarter valued at $275,476,000. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main increased its position in American Water Works by 945.5% during the 4th quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 1,806,146 shares of the utilities provider's stock valued at $238,397,000 after purchasing an additional 1,633,389 shares during the period. Wulff Hansen & CO. grew its position in shares of American Water Works by 12,816.0% in the 2nd quarter. Wulff Hansen & CO. now owns 1,464,674 shares of the utilities provider's stock worth $189,177,000 after buying an additional 1,453,334 shares during the period. M&G Plc purchased a new stake in shares of American Water Works in the 1st quarter worth about $108,688,000. Finally, Boston Partners purchased a new stake in shares of American Water Works in the 4th quarter worth about $92,838,000. 86.58% of the stock is currently owned by institutional investors.

About American Water Works

American Water Works Company, Inc, through its subsidiaries, provides water and wastewater services in the United States. It offers water and wastewater services to approximately 1,700 communities in 14 states serving approximately 3.5 million active customers. The company serves residential customers; commercial customers, including food and beverage providers, commercial property developers and proprietors, and energy suppliers; fire service and private fire customers; industrial customers, such as large-scale manufacturers, mining, and production operations; public authorities comprising government buildings and other public sector facilities, such as schools and universities; and other utilities and community water and wastewater systems.